Oct 13, 2011

Oracle OPM Solution for a Paper Industry

I am currently in the middle of designing a solution for a paper industry. Paper industry comprises of a base product cut into different sizes, each size packed into different packing materials and shipped to customer. For example, one customer may order for a BP with a width  100 CM and packed using packing material 1. Another customer may order the same BP, with a width of 120 CM and packed using Packing material 2 and another customer may order the same BP, with a width of 200 CM and packed using packing material 3.
The planner will consolidate all these orders and produce 450 CM width of BP, cut it into different widths based on customer orders and pack them and ship them.
The planning and costing are at the BP level.
This is called Attribute based manufacturing.
This similar requirement exist for Food Processing Industry. For example, in the manufacture of flavored yogurt, the companies produce base flavorless yougurt and add flavours and pack them separately and ship it to customer. The customer will order Strawberry yogurt, the company will produce base yogurt and add flavors and pack and ship to customer.
Or in a bakery, a baker will produce one big cake of 10 Kg and cut them into cakes of 1 Kg, 2 Kg or 5 Kg and pack and sell them to the customers.
How can you handle this in an ERP application? It doesn't make any sense to create too many finished products and associated formulae. How do you optimize planning, costing and data entry minimization considerations?

No comments: